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Citigroup announced Friday it would cut 20,000 jobs.
The reductions, detailed in the company's fourth-quarter financial results, may be related to Citi continuing to execute its ongoing reorganization.
Citi said it plans to close the position “over the medium term,” ultimately resulting in cost savings of $2 billion to $2.5 billion.
The Citigroup logo at the entrance of a bank office in Paris, France, Monday, February 27, 2023. Citigroup is building a new trading floor in Paris as the Wall Street giant prepares to nearly double its workforce in the French city. . (Photographer Benjamin Gillette/Bloomberg via Getty Images/Getty Images)
The layoffs will reduce Citi's workforce of approximately 200,000 people, excluding Mexico, by 10% at the end of 2023. Including Mexico, direct employment rose to 239,000, according to Citi.
Memo provides overview of Citigroup, downsizing and redeployment process
Citi said it expects to incur costs in the range of $700 million to $1 billion in fiscal 2024 due to medium-term headcount reductions and reorganization.
Friday, April 7, 2023, at a Citibank branch in San Francisco, California. Citigroup is scheduled to announce its financial results on April 14th. (Photographer: David Paul Morris/Bloomberg via Getty Images/Getty Images)
Citi said in September that its ongoing corporate restructuring is aimed at “faster decision-making, greater accountability and a stronger focus on our customers.” This included making the people running the company's five businesses report directly to Chief Executive Officer Jane Fraser and reducing management levels.
Citigroup restructures business model to streamline operations
The company said it incurred approximately $800 million in restructuring costs and $100 million in severance costs in the fourth quarter.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| C | Citigroup Inc. | 52.62 | +0.53 | +1.01% |
Citi's total revenue for the fourth quarter was $17.44 billion, with a net loss of nearly $1.84 billion.
Citigroup Inc (Citi) logo.Reuters/Chris Helgren (Reuters/Chris Hellgren/Reuters Photo)
“Given how far along we are on our simplification and divestiture path, 2024 will be a turning point that will allow us to fully focus on the performance and transformation of our five businesses,” Fraser said in a statement. . “We remain confident in our ability to adapt to the evolving capital and macro environment in order to achieve our medium-term goals and return capital to our shareholders, while continuing to make the investments necessary for our transformation.”
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She became Citi's CEO about three years ago.
In addition to Citi, several other companies announced plans to cut jobs this week, including Google, Amazon, and Unity Software.
Daniella Genovese contributed to this report.
